Base Erosion and Profit Shifting (BEPS)

Tax is in the headlines in a manner few could have predicted – even a year or two ago. This has led to a range of issues for businesses to consider, including the OECD's Base Erosion and Profit Shifting project.

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About BEPS

The OECD began work on their BEPS project to address concerns that current principles of national and international taxation were failing to keep pace with the global nature of modern trading and business models. In particular, a perception that existing rules give businesses too much opportunity for arbitraging tax rates and regimes.

While views vary, one clear and consistent message is that the matters on the OECD Action Plan agenda are set to significantly shape the means by which governments collect tax and companies align their tax affairs and business models in the decade ahead. Given the OECD’s pace of work, change is inevitable and will be swift.

Endorsed by the G20 Finance Ministers and Central Bank Governors, the Action Plan will likely be delivered in a short 18 to 24 months timeframe.

OECD Timetable and actions

OECD’s BEPS Action Plan identifies fifteen specific actions that are needed for governments to address the challenges outlined above. The OECD has set the below timeline for itself to address these fifteen actions in three phases.

Click on each of the links below to find a brief description and expected output of each of the 15 BEPS Actions, along with related documents, commentary, and videos.

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